I saw another example of how sloppy financial and estate planning causes problems in bankruptcy. In this instance, a man took out a $100,000 life insurance policy on his own life. The man died at a time when he and his wife had substantial amounts of credit card debt. The wife wanted to file bankruptcy. I explained to the that the life insurance proceeds would be part of her bankruptcy estate if she were the insurance beneficiary. I suggested that she collect the life insurance, but that she avoid filing bankruptcy.